The problem with your theory is the idea that "glass half full" works with nation-states and terror. The "Palestinians" have not stopped terror and gone to the UN instead. Not when rockets hit Beersheva the same day you drafted this puff piece. If the "Palestinians" really gave up terror your premise would be better. Unless you are suggesting coming to piece with only the west bank: three states for two people, perhaps. You must not live in the south.
U.S., allies stage 20 strikes against Islamic State in Iraq (Reuters)
from the article: Israeli leaders' price tag against the Palestinians